good evening, lawrence, thanks very much and thanks to you at home for joining us for the next hour. this spring, republicans in the house and senate voted to kill medicare, they voted for the house budget that would get rid of medicare by privatizing it, that vote was almost unanimous among republicans in the house, only four republicans voted against it, 235 voted for it. in the senate, five republicans voted against it and 40 senators voted for it, and that nearly unanimous republican endorsement of killing medicare, that vote for the paul ryan budget led directly to the loss of a safe republican seat back in may. the democrats in charge of taking back the house for their party in 2012 rather gleefully announced they did have a three-part strategy and they three part strategy was medicare, medicare, and medicare. if every swing state and swing

district republican started to sweat over their fate in the next election, even those worried republicans all spared a thought for this poor sot in nevada. his name is dean heller, and because of the quirk in the timing over his sex scandal and when the nevada governor appointed dean heller, because of that, dean heller is the only poor sap on earth who had to vote to kill medicare twice. while he was still in the house, he voted for the plan to kill medicare, then voted again for the same thing again, voting not once, but twice to kill medicare, and he represents a swing state, and this is what dean heller's life is like now.

>> this spring congressman dean heller voted to end medicare. then heller was appointed to the senate where he voetded again to leave nevada seniors to the mercy of the private insurance kpaens. now we get to vote on heller's replacement, and for nevada, comes down to one issue, will the -- why would they deserve our vote? >> whether or not you are a sucker for a walking baseline in any ad, i confess, voting for the paul ryan kill medicare budget is so politically potent, what you saw there is that vote being wielded against people who didn't even necessarily vote for it themselves but who might be sort of like the people who did vote for it. this kill medicare vote the republicans took this spring, this is what's known in politics as a humdinger, democrats think those votes are still going to be driving votes in november of next year.

that is how democrats feel about the republicans paul ryan kill medicare budget, but the republican leadership in congress, looking at that same data apparently looks at that kill medicare vote from this spring and thinks we did not go far enough. the budget would have capped spending at below 20% of gdp. to get to cuts that dramatic republicans did something as dramatic as killing medicare and a lot more besides. now republicans are saying they won't vote to raise the debt ceiling unless spending is capped at even less than that 20%. they now want to cap spending at 18% of gdp. that's about $300 billion smaller than the paul ryan kill medicare budget. republicans had a chance to vote on a budget back in april. back in april they considered an 18% spending cap, and even republicans considering their own proposal to do that, earlier this year, even republicans thought it was too radical. more republicans voted against

that than very it. but now they are insisting they must vote on that thing again. they want to do it now, act out that pageant of symbolic voting before they'd agree to raise the debt ceiling. that's where the fight is now on whether or not we're going to default on our debt, republicans in congress insisting on voting on something so draconian they already voted it down this year. if by some miracle that passes, president obama said he'd go ahead and veto it. on friday, signatures from about 200,000 obama donors, volunteers, and supporters to president obama's campaign headquarters in chicago. these are not just 200,000 random americans, these are 200,000 people who knocked on doors, walked precincts, raised money, gave money, and helped the last time president obama ran for president in 2008.

it brought with them on friday a warning, a message to the president, to not follow the republicans down the rabbit hole on these budget fights. >> what this is about is about letting the president know how desperately we want to support his campaign, how much we want to be volunteering and being in the fox hole with him again but we simply cannot if he cuts medicare, medicaid, and social security benefits. >> i'm 59 years old. when i heard he's willing to cut medicare, medicaid, and social security, he signalled to me that my future is weak. >> i cannot put my time and money towards that campaign if those cuts are made. >> no, i won't. not if he cuts medicare and social security. i'm 61. i'm looking at a retirement in a few years. if this is just a give away on the table like everything else

has been, he has lost my support completely. >> as we run out of time on the issue of raising the debt ceiling, republicans in congress are telling the president that he has a choice for the economy, forgive the war metaphor, but they are saying either blow up the economy with a cruise missile or blow up the economy with a dirty bomb. either we'll take a direct hit because we'll default on our debt and will desin rate gdp and we'll never get that back and we'll be back in recession and likely into a depression, sounds fun, or the dirty bomb, they themselves rejected as too insane for their own vote just months ago, their proposal to cut spending, hundreds of billions below even their kill medicare budget. their kill medicare budget which horrified upstate new york enough to turn that blood red district blue. the president's own campaign volunteers now telling him to

reject the framing republicans have insisted on, not take the republican bait to go after social security and medicare, and in the mix of all of this, mix of what's going on on the right and on the left, on sunday, the president announced the new head of the consumer financial protection bureau will not be elizabeth warren, frankly better than anybody else about communicating with people about economic issues, instead, elizabeth warren's deputy, a former ohio general praised today by elizabeth warren himself, praised today by his home state snarts who said there's no question of his qualifications and praised today even by the current attorney general of ohio, a republican, the man who beat him an an election last year, said he'd do a good job. the consumer protection agency officially opens for business on thursday.

republicans have long said now they'd oppose not only elizabeth warren running that agency, but anybody running that agency, because they don't want that agency to exist. they think consumer protection is some sort of banking scheme and they are with the bankers. so this is going to be a fight. this is always going to be a fight, but now we know thanks to how far the republicans are pushing things in washington right now, now we know this is going to be a fight on a high wire over an abyss. elizabeth warren writing today "we got this agency by fighting, we stood it up by fighting, and if it takes more fighting to keep it strong and independence, then we can do it." joining us tonight for the interview is elizabeth warren, she's been serving as an assistant to the president and special advisory to the president, thank you so much for your time. >> thank you, it's a pleasure to be here. >> this is a landmark week for you, agency you championed comes into existence.

how do you feel about this first week and the chances for this agency's survival? >> you know, i actually feel great, and i'll tell you why i feel great. i feel great because the agency is strong, because we have attracted tremendous people to come here and work, because there are people around the country who follow what we do and who are behind it, because we're really going to make this work. and look, if it takes a fight, we've fought before, we'll keep fighting, because at the end of the day, we are fighting for america. we are fighting for middle class families who just want a fighting chance when they go into the marketplace, they want to be treated honestly and fairly, they don't want to be cheated. this agency is there to be a cop on the beat and make sure there's fairness in the system. >> given republican criticism of the agency and this really

palpable fear in washington over you as a potential nominee and what this agency is going to do. let me ask you for specifics. one thing you described today, you set up an office of service member affairs working on problems they face. what is that need there that you are trying to meet? what is the agency doing to meet that need? >> this has been one of the very first parts we filled in in the agency as we're trying to build all the pieces out. holly petraeus came into me the second week i was on the job and started talking about what's happening to military families. look, i knew some of it, but boy, i didn't know it firsthand the way holly petraeus knew it, about how new service members are targeted by those who figured out they can peel their money away, what's happening to service members when they are

overseas and they are not getting the full protection of the law they are entitled to, about the number one reason in america for losing your security clearance is a problem with a creditor. holly said there's a lot you can do with this agency and i want to see you do it. i had a couple of conversations with her and i said shoot, i think we just saw the person who should head up that office and that's what she's been doing. she's gone on her own to several, really starting the conversation with military families about what's happening to them and what we can do to be helpful. if you go to our blog, let me do a commercial, www.consumerfinance.com. there are a lot of pieces on it right now, but one is there for military families and they have an ongoing conversation with holly and the staff she's building. we just met last week with the judge advocates general of the different military branchs and are working out with the department of defense how we can work in concert to be stronger to be there for military families. there are major financial

institutions that have admitted that they didn't follow the law that they focussed illegally against military members and their families when those members were deployed in iraq and afghanistan and other places outside the united states. we've jumped in on that and asked for what procedures they are using to make sure they are going to be in compliance with the law, and starting this thursday, we get to start putting our cops on the beat. we're here for military families, but, you know, that's just a microcosm of what's happening in all of america. that's what this agency is for. >> hearing you talk about that with such passion, and i know this is what you've been doing for all this time, i have to ask you if you wish you had been appointed by the president to be running the agency, and if now you are leaving washington,

heading home to washington, if you feel you've developed a washington allergy or if you'd like to get back in there? >> let me start with the first part, we would not have a consumer agency if not for president obama. two years ago, right about now, he looked out and said the consumer agency, that's what i want to put in financial regulatory reform. over the next year while everybody fought back and forth over the regular reform bill, there were a lot of offers on the table to get something else. he consistently said no. and a year ago right now, this week, he signed into law a bill that made this consumer agency exist and as strong and independent way. now, since then, what's happened is there are folks on capitol hill, republicans in the senate and the house, they voted against the bill to begin with -- against the agency to begin with, they've introduced bills to try to cut our funding, introduced bills to try to make us less independent, introduced

bills so we have a gummed up structure so we can't get anything done and bills to flat out repeal us. i want to be clear, the reason i cannot run this agency is because of those people. they've made it perfectly clear they will not let the agency go forward if i'm there, fine. i can step away from this. what i care about is this agency. the president has now made his nomination. he's a good man, richard cordray is, and i think it's time to take the fight straight to the republicans. we need a director in place, that's the law, and we are not, not, not going to let the minority come in and dictate the terms of this agency, rip its arms and legs off before it's able to help a single family. >> when you talk about taking it straight to the republicans, do you want to be part of that fight in the future?

>> you know, i'm going to be part of that fight one way or another, rachel. let me be clear about this. i have really done three things in my life, i have taught school, because that's what i do, i've done research around what happens to middle class families and tried to understand that, and i have thrown rocks at people that i think are in the wrong. i've done it before, i've continued to do it, and i'm going to do it in the future. >> elizabeth warren, consumer advocate and harvard law professor. thank you for taking time on this night of all nights to talk to us about this. best of luck, i hope we'll stay in touch. >> thank you. >> you know know if you don't already there's an effort underway by liberals and massachusetts democrats to make elizabeth warren convinced she should run for senate against scott brown. just so you know. i'm reporting, you decide. as we steam headlong to an on

purpose default of the nation's debt, today in washington things did not just get not better, things got weird. things got surreal even. instead of running around like they have been doing, today was freeze tag, stopped dead in its tracks. i think we found out who was it. here's how citigroup describes it. asking what the u.s. economy might look like after a possible u.s. treasury default is akid to

here's how citigroup describes it. asking what the u.s. economy might look like after a possible u.s. treasury default is akid to asking what will you do after

you commit suicide. if this country defaults on its obligations, it will be much worse than the great depression. it will make the massive financial crisis of 2008 look mild. when moody's said it's considering downgrading our nation's credit scores, their threat was not to downgrade the nation once we default on our debt on august 2, their threat was to downgrade us now, now, mid-july because we have gotten

this close to default, because congress is willing to put the full, faith, and create of the united states in this much danger. if we do actually default on purpose, not only does the government effectively shut down, not only does social security checks most likely stop going out to the people, for example, who live off that check, not only do $50 to $100 billion disappear to treasury bills, not only does the stock market tank, but interest rates, the only good thing in the economy right now, only point of

flexibility in the economy that's limping around, interest rates near zero now. if they default, you know what happens to them? you take a direct hit on your mortgage, credit card bills, car loan, student loan, home equity loan. on any loan you got. this will have a personal affect on you. as tough as it gets to you for an individual human, it gets tough in all the same ways for

they are going to schedule some votes for maybe -- i don't know, you business on the 16th of never at a quarter past yeah right? joining us now, john stanton, washington reporter, roll call reporter, thanks for joining us. >> good to be here. >> what's going on right now among republicans that there does not seem to be a sense of urgency there. do you think it's negotiating tactics? >> yeah, i think it's a negotiating tactic sort of within their own conference frankly, i think the leadership has a sense of urgency privately right now. seemed like they had it out

there in public a week ago and they backed away from that. they are now supporting this cut, cap, and balance bill the conservatives want, this is more really a negotiating tactic with their own conservatives, trying to convince them they are serious about trying to pass these bills so when they do fail they will then need to go back to them and say we have to do the mcconnell plan or some other debt limit raising legislation and they need them to buy into it. and right now, they just don't have that support within their

own conference. >> that is the dynamic i sort of thought was going on, that's why my hair spontaneous come busted today. this is now a wig, when i saw they were putting off the vote until next week. if the whole idea is to start negotiating again with their base, we're out of time if this isn't even going to start until next week. >> well, they are in a bit of a tricky spot quite frankly because their base thinks what they are trying to do is what you said, have these votes, show

they can't pass these things, then move on to something else they can do. to get their base to do the second step, they need them to not believe the first step is what's happening, they need them to believe they want to do these things. this week they decided to postpone the vote at least for now in the hopes, i guess, technically of finding democratic votes. only thing is there are no democratic votes out there for them. no way they are going to get the 50 or 60 democrats they are we got closer to august 2, that more people would feel the sense of urgency and need to do something. it's been the opposite of it, which is complicating things more than they expected. john stanton, thanks a lot, john, we appreciate it. >> any time. finding out the number of default denialists in the

republican party is increasing, it's like you always knew somebody was an end timer, only a few days left. it's one thing to know somebody has an apocalyptic mindset, another thing to find out that person has been in charge of your retirement account or your savings account. it's just terrifying. you ever been in the grocery store and seen the ads they put on the floor now? you are still looking at ads because the ads are on the floor. turns out there's a connection between the ads on the floor of the grocery store and the really shaky looking future of the guy who owns fox news.

ever found yourself walking down the aisle of your local grocery store and then you get stopped in your tracks by something like this? not actually some poor guy that has managed to get him pinned under the heavy rack of the medicine oil. this is a sort of cool advertisement placed on the floor, it's designed to capture eye and make you want to buy their product. no matter it where it hurts, this painkiller targets your pain. look up, look up, now buy that particular painkiller. this is called floor ads. floor ads are big business across this country because -- come on, if you're a company who sells stuff? supermarkets, wouldn't you want a big, shiny floor ad like this one? a couple of years ago, a floor ad mysteriously started losing top clients. they didn't because people didn't want floor ads anymore. come on, they started losing

clients because a rival company in the industry was starting to lose their clients. floor graphics was a small firm in new jersey, but a big players entered the arena, a big player with a bigger corporate parent, a company you may have heard of, news corp. news corp. had a u.s.-based company called news america marketing that was already involved in the supermarket advertising business but really wanted in on the awesome floor ads. the only problem was this small new jersey company, floor graphics, was dominating the market. you say problem, news corp. says opportunity. news corp. set its sights on taking this little company down. they had the right guy to do it, according to a fortune magazine profile, crushes a rival's skull with a baseball bat. who better to take down this puny company than the baseball bat crusher guy. rupert murdoch's news america began to play hardball with floor graphics so so much so that in 2006 floor graphics had enough, filed an unfair news practice against news america. by breaking into our password protected computer system and

obtaining proprietary information. this complaint filed in new jersey federal court in 2006 accuses rupert murdoch's they had the right guy to do it, according to a fortune magazine profile, crushes a rival's skull with a baseball bat. who better to take down this puny company than the baseball bat crusher guy. rupert murdoch's news america began to play hardball with floor graphics so so much so that in 2006 floor graphics had enough, filed an unfair news practice against news america. by breaking into our password protected computer system and obtaining proprietary information. this complaint filed in new jersey federal court in 2006 accuses rupert murdoch's american supermarkets services companies of hacking into their computer data base. on at least 11 separate occasions, news america intentionally, knowingly, and without authorization breached our secure computer system and repeatedly accessed, viewed, and

obtained our private information. how did they know it was news corp? our investigation traced the unauthorized access to a computer with an ip address registered at the time to news america. was rupert murdoch's news corp. guilty of hacking into a competitor's computer system and then stealing all of their sensitive material? don't know. after a few days of testimony in the trial, news corp. settled the case out of court reportedly for about $29 million. shortly after settling, news corp. then bought the company it accused of hacking. little fish meet big fish, chomp. about 12 hours from right now, rupert murdoch and his son james murdoch will be testifying about the phone hacking scandal that's now threatening to take down at least some of the murdoch media empire ahead of what is expected to be must-see tv here on msnbc naturally, news corp. provided a statement to nbc news that reads in part "we reject the notion

that the issues at news international are somehow indicative of our culture." this is an isolated incident, this is not we at news corp. do business. one little paper. rest of us don't recognize the paper. it is key to rupert murdoch surviving the scandal. this is a "news of the world" problem, they'll say, not a murdoch problem. only problem, david carr, excellent media reporter for the new york times wrote today, the way news corp. cleaned up this alleged hacking scandal, u.s. hacking scandal with the floor company allegedly paying large sums of money to sweep the thing under the rug, that's been the way they've been operating in the u.s. for awhile now. news corporation has paid out about $655 million to make embarrassing charges of corporate espionage and corporate competitive behavior

go away. amazing what money can do. if you are wondering, as you should be, whatever happened to that news corp. executive who motivated his staff, whatever happened to good-old skull crushing paul calucci, he got promoted. he's publisher of rupert's new york post. david carr, brought up news corp.'s extreme business tactics in the u.s. mr. carr, thank you for being here. >> pleasure to be with you, rachel. >> there's reporting news corp. directors are contemplaing replacing murdoch with chase carey to the top position. do you place much stock in these reports, and how big of deal would it be? >> it would be a massive deal, hard to imagine news corp. without rupert murdoch. those of us who covered the beat have a stockholm syndrome. we lived with mr. murdoch so long we can't imagine life

without him. everything depends on him retreating and apologizing, two things he's not very good at, so i think we can assume it's not going to be a great day for rupert murdoch, but the idea they are going to pivot from that and immediately replace him with chase cary, i'm not buying it. >> in terms of the scoop of his pulpibility, is it isolated to a "news of the world" problem if these types of business practices can be sloun throughout the empire? is that the key to his pulpibility? >> i think it's okay britain is on fire. that's the heart of many of his own interests in terms of the papers and where his own talents are, but in the business sense, not that big of a deal.

this time the number two man in scotland yard. one day after number one man went belly up. and easy to follow flow chart tonight of the tangled

relationships between and among murdoch's people and the police and will ask, is it happening here in america as well? >> i think it's all of the pieces that makes the story so darn interesting, tough to look away. wall street journal today suggesting people like you, people like me were far too interested in this and we're engaging by taking joy in the pain and misery of mr. murdoch and the people that work there. at the same time, if you looked at the front page of the wall street journal, splash, big story, three more stories inside. you have an editorial you're ganging up on us, but your own paper, biggest, most important business paper in the world sought it fit to publish four hard-hitting stories about it. >> right after the chain saw line, while being insulted by it i admired the insulter. they want -- they, they want their read toers believe based on no evidence that the to be loid excesses of one publications tarnished thousands

of news corp. journalists across the world, making the case immediately the isolated of the crime makes it key of the importance. >> free floating nation state that operates by its own rules that roams off corners wherever it can. it takes regulatory and tax average of whatever jurisdiction it operates in. for the most part, those of us who cover the story have admired their aggression and ability to win over and over. it was assumed that they colored on the line not just outside the line. the illusion that mr. murdoch will get whatever he wants, the times at london, whether it's the wall street journal has been blown away. there's a kind of -- at least in britain, a british thing underway where nobody would ever

say anything about this guy, and the parliament tomorrow you can bet people are going to be screaming at the top of their lungs. it's going to be a rugged day for both murdochs tomorrow. david carr, nice to have you here. >> my pleasure. >> coming up on the ed show tonight, ed talks to shelden white house who understands what political advantage is. here, best new thing in the world today, most unexpected use of jeopardy. it's going to be a rugged day of jeopardy. when people run for office in addition to making regular campaign videos and ads, they have a send tee to make movies about themselves they postonline. chair? the statue of liberty? the grand canyon? it's all possible with a hoveround. tom: hi i'm tom kruse, inventor and founder of hoveround. when we say you're free to see the world, we mean it. call today and get a free hoveround information kit that includes a video and full color brochure. dennis celorie: "it's by far the best chair i've ever owned." terri: "last year, 9 out of 10 people got their hoveround for little or no money." jim plunkitt: "no cost. absolutely no cost to me."

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when people run for office in addition to making regular campaign videos and ads, they have a send tee to make movies about themselves they postonline. tim pauletty has been over the top. trying to recast himself as the nice guy from the upper midwest. instead as tim pawlenty, movie star. >> this is the united states of america. it takes an extraordinary effort. it takes extraordinary commitment and strength. valley forge wasn't easy. going to the moon wasn't easy. settling the west wasn't easy. >> it's very exciting, settling the west wasn't easy.

tim pawlenty, this is kind of the trend in political videos. i, politician struggling with poor name recognition, i'm secretly an american hero. discover me. i love this stuff, even when the candidates ugg me out a little bit i love these i am a hero videos. you don't have to go far back in time to find a kinder and jejtszer era in running for office. compared with tim pawlenty with a cape and tights this work bill clinton seemed totally over the top emotionally at the time. now when you look back at it now it's almost like a documentary. >> i was born in a little town hope, arkansas. >> perhaps the lowest key of low-key campaign videos from the 2008 ohio attorney general's race in a seven-minute video it features more than a solid minute of footage from a tv game

show, "jeopardy." >> in 1762. >> what is oxford. >> oxford. i suppose it was appropriate that richard kor dre would come up with a correct response on the last clue we had regarding oxford university, because this man received a b.a. at oxford, is that right? >> it's called the marshall scholarship program. >> after electrifying the people of ohio with that features his jeopardy skills did he go on to get elected attorney general of the great state of ohio? yes he did. richard kordre, five time champ was treasurer of ohio and attorney general of ohio and earned a reputation as attorney general for going after banks and predatory mortgage lenders

with some obvious relish. now richard cordray has been named to head up the consumer protection agency, the agency supposed to make sure banks write mortgages in a way that is fair and understandable. and that credit card companies send you rules and regulations in plain language so you can understand them. even you as an ordinary american, we're all supposed to be allowed to understand our financial products now. the idea that america ought to have a thing like that was, of course, championed and developed by our guest earlier this hour, elizabeth warren. elizabeth war rin brought richard corddy ray from ohio to washington, d.c. to run the enforcement division of the new consumer financial protection agency. president obama today made the case for richard cordray running the whole enchilada. >> back in the '80s richard was a five-time "jeopardy" champion and a semifinalist in the tournament of champions. not too shabby. that's why all his confirmation -- all his answers

at his confirmation hearing will be in the form of a question. that's a joke. >> it's never good when you have to say it, but that will be only the first sort of funny thing about the process from here on. 44 republican senators, get this 44 republican senators have already said they will block the appointment of anyone appointed to run the new agency because frankly honestly they don't want a new agency looking after consumers' interests in financial matters. now we have a nominee which means the president is calling the republican's pluf on this one, and elizabeth warren said she is psyched about this nomination and the only thing we know about this nominee that is not a good thing at noint, the only thing we know that this nominee is bad at so far is this. >> 400, please, alex. >> here the clue first. group which tops the country charts with the following song about a truck driver. listen.

♪ roll on highway note roll on along ♪ ♪ roll on daddy till you get back home ♪ ♪ roll on family roll on crew roll on mama like i asked you to do ♪ ♪ and roll on 18-wheeler roll on ♪ >> who is the bandit. >> no. i sensed you were calling a blang on that one. alabama. >> the bandits richard cordray five-time champion. the republicans do not want to exist.

over the past week the best new thing in the world today has involved the amazing nail-biting this is why people love sports sport. that was team usa's thrilling brink of elimination run through the world cup of soccer this past week. there was the moment in the quarterfinals against brazil when abby wambach tied the game with a header in extra overtime giving the u.s. to win in penalty kicks. so exciting. an all-time classic moment in american sports. then there was the incredible semifinal against france where the u.s. scored three times securing the place in the final and giving the normally empty sports world on the day after the all-star game, a reason to live and thrive even. it led to yesterday's women's world cup final. pure pins and needles, edge of your la-z-boy action from start to finish. team usa played incredibly.

in the end they could not close the deal. ultimately the sports miracle belonged to team japan. they are the ones in blue here. team japan won the world cup on penalty kicks. disappointing as that was for team usa, it has to be said sort of a great moment for team japan and for their country. the team itself and their coaches saying they took strength and inspiration from their country's perseverance after the devastating earthquake and tsunami. one of the players on the team had worked at the approximate fukushima nuclear plant from 2005 to 2009. i know. last night's victory, japan's fifr ever soccer world cup win made the country of japan very happy, and frankly it is good to see them happy given what they've gone through the past few months. team usa played brilliantly all through the competition until the end. it was mazing. they're now back on u.s. soil where they really do deserve a welcome as sports heroes. as for the best new thing in the world today, real live members of tea